Germany, GFK: slow consumption recovery, uncertainty slows purchasing propensity

Germany GFK slow consumption recovery uncertainty slows purchasing propensity

(Finance) – Consumer confidence in Germany continues to improve, but slowly. While economic and income expectations rise slightly, willingness to purchase remains low. The lower willingness to save has a positive effect, as consumer confidence improves for the second time in a row.
In April, a slight improvement is expected consumer confidence Germans in April. The GFK index, based on the survey conducted this month, highlights a value of -27.4 points, compared to -28.8 in March (data revised from a preliminary of -29). Reading is better than analysts’ expectations who estimated a rise in sentiment to -27.9 points.

They improve expectations about the economic situation, with the indicator rising by 3.3 points to -3.1. The indicator grew by 0.3 points propensity to purchase which stands at -15.3 points. The one on income expectations it rises by 3.3 points and is positioned at -1.5 points.

“The recovery of consumer sentiment is very slow,” he explains Rolf Bürkl, consumer expert at NIM. “Real income growth and a stable labor market in themselves provide good conditions for a rapid improvement in consumer confidence, but planning security and optimism for the future are still lacking among consumers. In times of multiple crises, the high degree of consumer uncertainty, combined with low confidence in Germany’s economic development, slows down the willingness to buy. As a result, domestic demand is still failing to stimulate the economy. Simply put: bad sentiment is obscuring the facts.”